China denounces US threat of sanctions over trade with Iran

Lianyungang port in China. The country buys an estimated 80% of Iran’s oil exports. Photograph: VCG/Getty ImagesView image in fullscreenLianyungang port in China. The country buys an estimated 80% of Iran’s oil exports. Photograph: VCG/Getty ImagesChina denounces US threat of sanctions over trade with IranBeijing says it will take ‘all necessary measures’ to protect its interests as US steps up efforts to isolate Tehran

Explainer: could US sanctions threaten China-Iran ties?

China has denounced the threat of US sanctions for its trade with Iran, saying any such measures would be illegal, and warned it would take “all necessary measures” to protect its national interests.

Beijing’s rejection of the US threat of secondary sanctions for any country or entity continuing to trade with Tehran had been predicted. China buys an estimated 80% of Iran’s oil exports and has defied previous US efforts to limit the flow of revenue to the Tehran regime.

Its statement of opposition raises the question of how far the Trump administration would be prepared to go in confronting China and its financial system in the drive to isolate Iran.

In making the sanctions threat on Monday, the US treasury secretary, Scott Bessent, announced an initial set of sanctions on 60 individuals, entities and vessels for alleged involvement in trade with Iran, but there were no Chinese financial institutions on the list, despite their involvement in financing the Iranian oil trade. The omission reflected US caution.

Read moreAsked why the Trump administration had not declared immediate sanctions and had stopped short of naming potential sanctions targets, Bessent replied: “Why would I want to blow up the global financial system?”

Financial and trade experts say the administration is well aware of the risk of Chinese retaliation before a scheduled summit next month between Donald Trump and Xi Jinping. China could strike back through financial markets or with limits on its export of critical minerals.

The spokesperson for China’s foreign ministry, Lin Jian, told reporters on Tuesday: “Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted.

8:57‘Economic D-day’: How desperate is Trump to end Iran war? - The Latest“China has already stated many times that it firmly opposes illegal unilateral sanctions. China will take all necessary measures to firmly safeguard its own rights and interests.”

Iran has been economically wrecked by the war and the accompanying US blockade, but it maintained its defiance in response to Bessent’s threats of total isolation.

The economy minister, Ali Madanizadeh, said on state television: “Our defence is no longer so defensive; the enemies should wait for an attack.”

An oil tanker was reportedly hit on Tuesday by an unidentified projectile at the mouth of the strait of Hormuz. The United Kingdom Maritime Trade Operations Centre said the crew was safe and no environmental damage was immediately apparent. Only two commercial vessels were reported to have successfully made the transit through the narrow waterway on Monday.

Iran and Oman, which sits on the southern shore of the strait, held talks on Tuesday aimed at agreeing joint management of the waterway between the two countries. Oman’s foreign minister, Badr al-Busaidi, said after the discussions had concluded that there were hopes that a temporary agreed route through the strait would be announced soon.

A Pakistani delegation was also in Tehran, leaving on Tuesday after a day’s talks with Iranian leaders. The delegation was headed by the army chief, Field Marshal Asim Munir, who has led Pakistan’s mediation efforts in the Iran conflict. The Pakistani military said the Tehran talks were focused on reopening the strait of Hormuz. A memorandum signed by the US and Iran in June was intended to reopen the strait pending further negotiations but the deal collapsed within weeks.